BCSB Bcsb Bancorp, Inc. (MM)

BALTIMORE, July 16 /PRNewswire-FirstCall/ -- BCSB Bancorp, Inc. (NASDAQ:BCSB), the holding company for Baltimore County Savings Bank, F.S.B., headquartered in Baltimore, Maryland, reported net income of $285,000 or $0.09 per basic and diluted share for the quarter ended June 30, 2008 as compared to net income of $599,000 or $0.19 per basic and diluted share for the quarter ended June 30, 2007. Financial results for the three months ended June 30, 2007 included a $299,000 gain on the sale of certain loans in connection with a balance sheet restructuring initiative completed in the 2007 fiscal year. Net income for the nine months ended June 30, 2008 was $434,000 or $.14 per basic and diluted share, as compared to a loss of $2,615,000 or ($.84) per basic and diluted share for the nine months ended June 30, 2007. Net income during the nine months ended June 30, 2007 was significantly affected by aggregate losses of $7.1 million relating to the balance sheet restructuring. During the same period, the Bank received insurance proceeds amounting to $3.4 million as a partial recovery related to the losses from a check-kiting scheme discovered in June of 2006. President and CEO Joseph J. Bouffard commented that this was a significant period during which the Company enjoyed its third consecutive quarter of profitability and completed a conversion to a fully publicly traded company. As a result of the conversion, capital ratios were strengthened and debt was reduced at both the Bank and the holding company. Bouffard also noted that earlier in the calendar year, in recognition of the Company's improvement, the Bank's principal regulator, the Office of Thrift Supervision had rescinded a Supervisory Agreement that had been in effect since 2005. On a cautionary note Bouffard noted that although the quality of the Company's loan portfolio did not require any additions to the loan loss reserve, if the economy continued to decline additions to the allowance may be necessary in the future. June 30, 2008 Highlights -- Raised nearly $20 million in April 2008 by completing conversion from Mutual Holding Company structure to a fully publicly owned corporation. -- Paid off more than $16 million in debt during the quarter ended June 30, 2008, including $6 million in Trust Preferred Securities. -- Fiscal year to date net interest income increased by $740,000, or 7.4% compared to 2007. -- Interest rate spread for the nine months ended June 30, 2008 improved to 2.47%, a 29% increase over the prior year. -- In the non-interest expense category, during the quarter the Company recognized expense of $130,000 associated with a reduction in staff and reversed $89,000 in expenses previously accrued in connection with potential litigation that had been settled. -- Nonperforming assets as a percentage of total assets at June 30, 2008 drops to .28%, a 37% improvement compared to June 30, 2007. -- Allowance for loan losses to nonperforming loans increases to 161%. -- Equity to assets ratio at June 30, 2008 improves to 8.4% from 5.2% at June 30, 2007. This press release contains statements that are forward-looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or the Securities and Exchange Commission in its rules, regulations and releases. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors, including but not limited to real estate values, market conditions, the impact of interest rates on financing, and local and national economic factors. Accordingly, actual results may differ from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by the Company or any other person that results expressed herein will be achieved. BCSB Bancorp, Inc. Consolidated Statements of Financial Condition (Unaudited) June 30, September 30, 2008 2007 (Dollars in Thousands) ASSETS Cash equivalents and time deposits $61,191 $76,116 Investment Securities, available for sale 999 3,970 Loans Receivable, Net 402,706 416,302 Mortgage-backed Securities, Available for sale 94,325 104,999 Foreclosed Real Estate 0 94 Premises and Equipment, Net 9,902 10,454 Bank Owned Life Insurance 14,270 13,847 Other Assets 14,785 16,599 Total Assets $598,178 $642,381 LIABILITIES Deposits $510,259 $558,457 Borrowings 10,000 20,000 Junior Subordinated Debentures 17,011 23,197 Other Liabilities 10,792 6,135 Total Liabilities 548,062 607,789 Total Stockholders' Equity 50,116 34,592 Total Liabilities & Stockholders' Equity $598,178 $642,381 Consolidated Statements of Operations (Unaudited) Three Months ended June 30, Nine Months ended June 30, 2008 2007 2008 2007 (Dollars in Thousands (Dollars in Thousands except per share data) except per share data) Interest Income $8,254 $9,656 $26,118 $29,860 Interest Expense 4,565 5,869 15,403 19,885 Net Interest Income 3,689 3,787 10,715 9,975 Provision for Loan Losses 0 0 0 117 Net Interest Income After Provision for Loan Losses 3,689 3,787 10,715 9,858 Total Non-Interest Income 540 808 1,434 (5,833) Total Non-Interest Expenses 3,810 3,749 11,633 8,164 Income (Loss) Income Before Tax Expense (Benefit) 419 846 516 (4,139) Income Tax Expense (Benefit) 134 247 82 (1,524) Net Income (Loss) Income $285 $599 $434 $(2,615) Basic and Diluted Earnings (Loss) Per Share $0.09 $0.19 $0.14 $(.84) Summary of Financial Highlights (Unaudited) Three Months ended Nine Months ended June 30, June 30, 2008 2007 2008 2007 Return (Loss) on Average Assets (Annualized) 0.19% 0.35% 0.09% (0.48%) Return (Loss) on Average Equity (Annualized) 2.27% 7.03% 1.42% (10.28%) Interest Rate Spread 2.52% 2.43% 2.47% 1.92% Net Interest Margin 2.57% 2.41% 2.47% 1.92% Efficiency Ratio 90.05% 81.58% 95.75% 197.10% Ratio of Average Interest Earnings Assets/Interest Bearing Liabilities 101.78% 99.44% 99.91% 100.13% Allowance for Loan Losses (Unaudited) Three Months ended Nine Months ended June 30, June 30, 2008 2007 2008 2007 (Dollars in Thousands) (Dollars in Thousands) Allowance at Beginning of Period $2,674 $2,773 $2,650 $2,679 Provision for Loan Loss -- 117 Recoveries 46 26 215 212 Charge-Offs (45) (93) (190) (302) Allowance at End of Period $2,675 $2,706 $2,675 $2,706 Allowance for Loan Losses as a Percentage of Loans 0.66% 0.66% 0.66% 0.66% Allowance for Loan Losses as a Percentage of Nonperforming Loans 161.0% 97.2% 161.0% 97.2% Non-Performing Assets (Unaudtied) At June 30, At September 30, At June 30, 2008 2007 2007 (Dollars in Thousands) Nonperforming Loans: Commercial $1,649 $2,266 $2,283 Real Estate -- -- 487 Consumer 13 24 13 Total Nonperforming Loans 1,662 2,290 2,783 Foreclosed Real Estate -- -- -- Other NonPerforming Assets 20 -- 126 Total Nonperforming Assets $1,682 $2,290 $2,909 Nonperforming Loans as a Percentage of Total Loans 0.41% 0.55% 0.68% Nonperforming Assets as a Percentage of Total Assets 0.28% 0.36% 0.45% DATASOURCE: BCSB Bancorp, Inc. CONTACT: Joseph J. Bouffard, President and CEO of BCSB Bancorp, Inc., +1-410-248-9130 Web site: http://www.baltcosavings.com/

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